1. FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

2. FIRST COMMERCIAL CAPITAL, INC.
Full Service Mortgage Brokerage Firm “Knowing one lender is good, knowing all the lenders is invaluable.”
Over 25 years experience
Over 6000 fundings, including over 1000 Multi-family & Commercial loans
Lowest Rates & Greater Leverage
Aggressive Pricing for Tier 2 & “C” Area Properties
Tough and Complex Deals are our Specialty
Fast, Personalized, and Efficient Service
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

3. Specifically tailored Multi-family & Commercial Financing Solutions
We provide our clients with customized financing programs and the most competitive pricing available.
Example: Funded April units, Downey, CA
$2.5 million Cash-Out Refinance % over the 11th District COFI Index
Client Objectives:
Solution:
1. Principal Pay Down Strategy
2. Minimum Volatility
3. Maximize Cash Flow
1. No limit on Principal Pay Down (PPD)
11th District COFI Index – historically the least
volatile & slowest moving Index in an uptrend
interest rate market
PPD = Payment Reamortization = Increased Cash Flow
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

4. Example: $17 million South East LA Portfolio - Cash-out Refinance
“C” Quality Tier 2 Apartments
Client Objectives:
Solution:
Maximizing Cash-Out
Maximize Cash Flow
Active Investor seeking to add new
acquisitions to existing portfolio
75% Loan to Value financing obtained
5 Year Interest Only Payment used to determine
debt service for greater loan amounts
Result: Investor increased cash flow and
obtained significantly more cash-out available
for new investments.
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

5. FIRST COMMERCIAL CAPITAL, INC.
Example:
15 Units South East LA property
Sales Price of $1,450,000
Issues:
Potential:
Deferred Maintenance (DM)
Rent Stabilization required
Mitigating DM provides for tremendous upside with Market Rents and double digit return.
Client Objectives:
Solution:
Maximum Leverage to allow for greater
allocation of funds towards DM
2. Competitive 5 year Fixed Loan
75% Loan to Value Financing obtained
5 Year 4.00%
Client opted to buy down rate after Cost/Benefit analysis*
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

6. 15 Unit South East LA Cost/Benefit Analysis Sales Price $1,450,000 for Tier 2,”C” Quality
No Points Option
1 Point Option
70% LTV Maximum
4.55% 5 Year Fixed
Loan Amount: $1,015,000
Payment: $5,
Cash on cash return: 3%
75% LTV Maximum
4.00% 5 Year Fixed
Loan Amount: $1,087,500
Payment: $5,191.84
Cash on cash return: 4%
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

7. FIRST COMMERCIAL CAPITAL, INC.
15 Unit South East LA - $1,450,000 - Cost Benefit Analysis Cont.
Net Cash On Hand Difference at the Close of Escrow = $61,625
NET CASH DIFFERENCE ALLOCATED FOR REHAB OF 8 UNITS
$7,703 x 8 = $61,625.00
Rehab
per Unit
Kitchen Cabinets
$1,600
New Tile
$2,400
Bathroom Cabinets
$703
Labor
$3,000
Total
$7,703.00
3 MONTHS LATER = RENT STABILIZATION & INCREASED RETURN
Outcome
$150/mo. Rent
Increase x 8 Units
$14,400 Annually
New Cash on Cash Return
8% (formerly 4%)
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment lending”

8. 9 Units Huntington Park - $800,o00 Sales Price
Challenge: Massive Rehabilitation Project
Solution: Temporary Bridge 8.99% Interest Only - No Prepay
Closed in 8 days!!
12 months later - Refinance Bridge loan - with Lender that allows for 1 year seasoning at new appraised value of $1,250,000.
New Loan: Cash-out Loan Amount of $937,500
5 year 3.95%
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

9. FIRST COMMERCIAL CAPITAL, INC.
Utilizing a Pay Down Strategy A pay down strategy makes sense when an asset does not require any rehab, the rents are at market, and the asset is already producing a sufficient income. Such an asset allows you to maximize leverage and obtain the best terms. By comparison When unknown factors such as significant rehab is required, uncertainty of when rents can be increased (rent control, etc.) the asset no longer fits the model above and should be viewed as a speculative fixer acquisition.
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

10. FIRST COMMERCIAL CAPITAL, INC.
Example: $3,475,000 Apartment Building Current income: $280, Stabilized: $309, Expenses: $91,000-$98,000/year. New Mortgage: $2.5 million Monthly payments: $11,935 at a rate of 4%. Net cash flow Est.: $3800(conservative $ ) Cash/cash return: 3.6% (without any principal pay down & based on $1M DOWNPAYMENT and $3000/month in potential cash flow Current cap rate: 4.8%
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

11. FIRST COMMERCIAL CAPITAL, INC.
Analysis: Monthly principal pay down of $2000 Factors: Applying a 3% increase in rents allowed by rent control (please note this is a conservative approach) due to fact stabilized rents provide for $309, in gross rental income). Value appreciation: 3% based on history (also a very conservative approach due to pent up inflation looming in the current marketplace). Also, up and coming locations bring an influx of foreign funds buying American assets.
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

12. FIRST COMMERCIAL CAPITAL, INC.
7 YEAR MODEL
After 7 years using the 3% factors above and $2,000 in monthly principal pay-down provides for the following:
Principal balance: $1,950,569.00
Annual Gross Income: $344,760.00
Estimated Appreciated Value: $4,149,331.00
Original $1,000,000 investment would provide a return of $1,200,000, a 120% return over a 7 year holding period or a 17% annually return.
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

13. 7 YEAR ANALYSIS CONTINUED
Factoring an approx. annual depreciation between $65-$69K , this asset will likely not produce taxable income but rather more than likely show losses, allowing for a potential reduction in taxable income and a taxable return equivalent of 24% (based on a 40% tax bracket).
SUMMARY
At the end of year 7 you can opt for either:
A) Sell and use the now $2.2M in equity for another investment or
B) Cash refinance, allowing for all $1M originally invested to be returned with property to continue cash flowing
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”

14. “Give us an opportunity and we’ll make you a client for life.”
Gil Figueroa, CEO
First Commercial Capital, Inc.
LOAN
FIRST COMMERCIAL CAPITAL, INC.
“Your first selection in apartment/commercial lending”